(a) General requirements. This course is recommended for students in Grades 10-12. Recommended prerequisite: Principles of Business, Marketing, and Finance. Students shall be awarded one-half credit for successful completion of this course.
(b) Introduction.
  (1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
  (2) The Finance Career Cluster focuses on planning, services for financial and investment planning, banking, insurance, and business financial management.
  (3) Banking services are primarily concerned with accepting deposits, lending funds, and extending credit. Banking services include cash management, short-term investments, mortgages and other loans, credit cards, and bill payment. Banking services are delivered via a number of different institutions, from commercial banks (the largest group) and other traditional means (savings and loans associations, credit unions, and local banks) to newer ventures through insurance companies, brokerage houses, and the Internet.
  (4) In Banking and Financial Services, students will develop knowledge and skills in the economic, financial, technological, international, social, and ethical aspects of banking to become competent employees and entrepreneurs. Students will incorporate a broad base of knowledge that includes the operations, sales, and management of banking institutions to gain a complete understanding of how banks function within society.
  (5) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.
  (6) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(c) Knowledge and skills.
  (1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:
    (A) demonstrate effective oral and written communication skills;
    (B) perform numerical and arithmetic applications;
    (C) demonstrate an understanding of integrity and strong work ethic;
    (D) demonstrate attention to detail in completed assignments; and
    (E) demonstrate effective problem solving.
  (2) The student evaluates the role of banking in the modern economy. The student is expected to:
    (A) outline the evolution of money and banking in the U.S. economy;
    (B) explain the operation of the Federal Reserve Bank and its role in the economy;
    (C) outline and analyze the history and the impact of the use of the gold or silver standard in monetary policy;
    (D) compare and contrast the types of financial institutions such as commercial banks, savings and loan associations, credit unions, investment banks, financial services companies, and mortgage companies;
    (E) discuss the role of the World Bank Group in international financial assistance; and
    (F) explain the nature of government agencies that provide financing to businesses such as the Export-Import Bank of the United States and the Small Business Administration.
  (3) The student acquires knowledge of banking processes and services. The student is expected to:
    (A) describe the nature of banking processes;
    (B) describe the types of banking services;
    (C) discuss retail bank products and services;
    (D) explain business bank products and services;
    (E) describe basic teller performance standards;
    (F) discuss the nature of loan products; and
    (G) discuss trust services available to customers.
  (4) The student describes the roles and responsibilities in banking services, including educational requirements. The student is expected to:
    (A) explain the role and responsibilities of administrative careers in banking services; and
    (B) describe the role and responsibilities of executive and managerial careers in banking services.
  (5) The student determines client needs and wants and responds through planned, personalized communication to influence purchase decisions and enhance future business opportunities in banking services. The student is expected to:
    (A) describe the importance of selling in the banking industry, including cross-selling and relationship selling;
    (B) explain the process of opening a new account; and
    (C) describe loan terms for a client.
  (6) The student simulates the day-to-day activities within a banking organization in order to ensure secure operations. The student is expected to:
    (A) describe bank loss prevention measures such as procedures for the secure handling of cash and checks; detecting and reporting counterfeit currency; developing business continuity plans; and preventing crimes to which a bank could fall victim such as fraud, robbery, and phishing;
    (B) discuss the role of the Federal Reserve System in banking operations and cash-handling procedures;
    (C) simulate daily cash processing activities such as processing damaged and mutilated currency and coin, ordering and depositing currency, depositing checks, handling differences in cash received and deposited, and transporting cash;
    (D) analyze the underwriting of loan applications to determine credit worthiness of customers, including credit analysis, and factors affecting loan pricing and structuring; and
    (E) discuss the nature of problem loan management.
  (7) The student describes laws and regulations used to manage business operations and transactions in the banking services industry. The student is expected to:
    (A) explain the elements of a compliance program;
    (B) discuss functional areas of a compliance audit;
    (C) analyze a compliance plan;
    (D) discuss federal regulations of lending and operations functions in banking services, including the ethical and social aspects of those regulations;
    (E) discuss e-compliance issues in banking services; and
    (F) discuss the responsibilities of regulatory agencies that oversee the banking industry.
  (8) The student investigates ways to create and maintain positive, ongoing relationships with banking customers in order to enhance the organization's image. The student is expected to:
    (A) explain ways to cultivate positive relationships with customers to enhance company image;
    (B) discuss the importance of meeting and exceeding customer expectations; and
    (C) describe the relationships that institutions providing banking services have with their communities.
  (9) The student maintains, monitors, controls, and plans the use of financial resources to enhance banking performance. The student is expected to:
    (A) describe the manner in which banks generate profit and explain measures they take to ensure profitability; and
    (B) use financial formulas commonly used in banking to aid in the growth and stability of banking services, including key ratios and banking calculations such as interest and annual percentage rate, capital adequacy, asset quality, management administration, earnings, liquidity, and sensitivity to market risk.

Source Note: The provisions of this §130.186 adopted to be effective August 28, 2017, 40 TexReg 6601